£38 million granted for credit union project

Category:
Loans

Updated:
18/04/2013
First Published:
18/04/2013

MONEYFACTS ARCHIVE

This article was correct at the time of publication. It is now over 6 months
old so the content may be out of date.

The Minister for Welfare Reform, Lord Freud, has announced the Association of British Credit Unions Limited (ABCUL) will deliver a project to help credit unions to provide financial services to over a million people in the UK.

The £38 million Credit Union Expansion Project will allow credit unions to offer financial products such as current accounts, cash ISAs and innovative bank accounts to consumers as part of a "modernised and expanded service".

The Department for Works and Pensions (DWP) claimed the project could ultimately save consumers £1 billion in loan repayments by 2019, by offering affordable loans and debt advice as alternatives to high interest payday loans.

Mark Lyonette, chief executive of the ABCUL, said improved levels of service would attract higher numbers of people using their financial products.

"More credit unions will offer a wider range of products including current accounts, Cash ISAs and innovative budgeting accounts," he said.

"The centralisation and streamlining of day to day tasks and the introduction of innovative modern access channels will make credit unions a much more attractive proposition to many more people and secure a solid future for the sector."

Related Articles

When used well, credit can be a viable way to help make ends meet and balance the books – but the problem comes when that credit is of the high-cost variety. The regulator has will be taking a closer look at the sector to see what else can be done.

The payday loan market has been under fire a lot in recent years, and as a result, the financial regulator stepped in. But has it made a difference? Unfortunately, it looks as though there’s still a lot of work to be done.

Competition in the personal loans market is as hot as ever, so much so that one loan provider has slashed rates to the lowest on record – but only to those who fit the bill. The shopping bill, that is…